TREND: Ethanol & Mexico Deregulation. Contracts, Contracts. Business, Business. 3 Points Informed Intel.
What group is working to integrate ethanol blends in Mexico’s rederegulated energy market? U.S. Grains Council
What sparked the ethanol and Mexico deregulation trend? In 2015, Pemex announced entring into the business of blending petrol and ethanol
Contract opportunities? Yes, because Mexico has only a small ethanol industry and Pemex is already in the business of awarding contracts
How will ethanol be delivered to Mexico? It will be exported from the U.S. by traditional transport or pipeline means
BioFuels International | USGC promoting US ethanol for Mexico’s energy policy reforms
TREND: Oil Prices Down. Information Technology in Oil and Gas Up. Up. Up. 6 Key Points.
Why are oil and gas companies turning to information technology?
- strategic spending in areas such as analytics, mobile, and cloud
- to lower costs
- to improve well production
- reduce costs
- make faster and better decisions
- increase workforce productivity
Wall Street Journal | Oil and Gas Companies Turn to Digital Technology as Low Energy Prices Pressure Business
UT-Arlington Research: Fracking Bad for Groundwater? 3 Key Points.
What publication published this research from the University of Texas at Arlington? Science of the Total Environment in the article “Temporal Variation in Groundwater Quality in the Permian Basin of Texas, a Region of Increasing Unconventional Oil and Gas Development
What groundwater area was included in the research? The research was the first of its kind in the “Cline Shale region of West Texas before, during and after the expansion of hydraulic fracturing and horizontal drilling.”
Is the impact to groundwater system or variable? Variable. “some of the toxic compounds associated with areas of high unconventional drilling may degrade or become diluted within the aquifer over time”
Science Daily | Groundwater quality changes alongside expansion of hydraulic fracturing
Water Grid. 3 Points Informed Intel from Charles Porter
“Charles Porter is a water rights and real estate expert and a visiting professor at St. Edward’s University. ” Porter also supports implementing a state water grid.
When was a water grid last proposed in the legislature? 2015
Did a water grid pass in 2015? No
Why is it important to prepare for a water grid before the need to move water requires it?
- Acquiring the right of way for water pipelines is a10+ year process
- Acquiring the right of way involves eminent domain & just compensation
Texas Trib + Water | The Q&A: Charles Porter
$90 Billion Innovation Investment by Oil & Gas Reduces Emissions. 5 Examples. Boon for Manufacturers.
The American Petroleum Institute touts the $90 billion investment in innovation by oil & gas with these facts:
- Record high natural gas production led to over 61% reduction in emissions from power generation
- Low cost energy increases median American income by $1200 annually
- Low cost energy means American manufacturers beat Euorpean manufacturers by 10%-20% lower costs
Statesman | Gerard: Needless rules, regulations undermine economy, environment
Why does Austin Want $80 M for Smart Water Meters?
Why does Austin want Smart Water meters? Austin residents don’t like surprise big water bills
What advantages does the CIty of Austin find with smart water meters?
- Smart water meters can alert property owners to leaks or large water consumption
- Can cut down on the need for the $3.6 million Austin pays outside contractors to read water meters each year
Statesman | Austin Water seeking $80 million for smart meters
TREND: Eastern County Bans Fracking.
Which Maryland County banned fracking? Prince George’s County
What was the vote? Unanimous by local officials
How far reaching is the ban? The ban applies to all areas of the county, including rural areas over the Taylorsville Basin
Maryland County First in State to Ban Fracking
Washington Post | Maryland county becomes first in state to say ‘no’ to fracking
Patteson Leaves TWDB Heads to GBRA. 2 Points. 2 Big Projects.
When does Texas Water Development Board executive administrator Kevin Patteson officially become the general manager of the Guadalupe-Blanco River Authority? May 2nd
What 2 projects are in the GBRA near future?
- Texas’s first seawater desalination plant combined with power generation on the Gulf Coast
- Mid-Basin Project that would divert and store water from the Guadalupe River in times of flood.
San Antonio Express News | Texas Water Development Board executive to head Guadalupe-Blanco River Authority
Largest Texas Water Rights Deal Out for Offer. 3 Key Informed Intel. Total Acre Feet. Aquifer Annual Allowance. +More
What property, with water rights, is offered for sale? Alcoa Inc.’s Sandow Lakes Ranch, 45 minutes east of Austin
How much water is available?
- 14 lakes covering
- 1,960 surface acres totaling 48,379 acre feet of water
- 44,000 acre feet of water, annually, through the Simsboro Aquifer
- Additional 14,000 acre feet is available for permitting
- 18,000 acre feet of surface water diversion from the Little River
How much of the water rights are being sold? 100%
Dallas Business Journal | Alcoa Inc. puts massive Texas land holdings; water rights on market for $250M
5 Points. Ray Perryman. Oil & Water Op-Ed.
- Water is 10% of the cost of drilling
- Water is 2/3″ of monthly operating costs once the well is producing”
- 4 Ways Oil and Gas companies use Water:
- Acquire clean water to use in the fracking process and drilling
- Dispose of flowback water & produced water
- Since 2013, oil & gas companies, can recycle water for fracking uses
- Companies can purchase treated wastewater from municipalities, like in Odessa, TX
- Communities may have a better perception of companies that use recycled or wastewater
- A factor in oil and as company water use is risk avoidance, water contamination fines are steep
Rio Grande Guardian | PERRYMAN: OIL AND WATER
TREND. 1st in the Nation Tax Credit. New Uses for CoProducts of Biofuel. 4 Key Informed Intel.
Which sate legislature is moving a new chemical production tax credit? Iowa
What is the tax credit for? Building production facilities that offer new uses for the co-products of biofuel production
Is the tax credit in existence in any other state? NO
What is the goal of the tax credit? To “attract inventors and manufacturers that will increase the value of the crops that we raise in Iowa”
Pilot Tribune (IA) | More important bills passed on Capitol Hill
The List. SWIFT Prioritization Finalized. 10 Data Points = Informed Intel.
- 28 Applications approved for prioritization
- $600 Million in funding for year 1
- $1.3 billion in funding for years 2-7
- 8 conservation projects
- 4 rural projects
- 3 reuse projects
- 1 agricultural project
- May 11, 2016 final application deadline
- Late summer= Final funding recommendations
- Funding= by end of 2016
TWDB | Texas Water Development Board announces prioritization of projects for SWIFT
Lege Trend: Water Storage Study Funded by Severance Taxes. 4 Key Informed Intel. + Procurement.
Which state legislature is moving a bill requiring a study of water storage? Colorado
What factors will be considered in the water storage study?
- How much water is going out of state
- Reservoir necessity to accomplish
How will the study be funded? The $250,000 study would be funded with existing severance taxes.
What is Colorado’s statewide water plan goal? 400,000 acre-feet of municipal and industrial water conservation by 2050
Durango Herald | Water storage bill advances in Colorado Legislature
3 Year High. Wind Energy Construction. 4 Key Informed Intel.
- American Wind Energy Association says wind energy construction is at a 3 year high
- 8,500 megawatts of wind power capacity was built in 2015
- That’s 3 times the 2014 construction capacity
- Wind energy capacity has increased by a factor of 6 in the last decade
- For 2016, 14,000 megawatts of wind turbines are either under construction or in the late stages of development
Fuel Fix | Wind energy construction rebounds across U.S., Texas
INTERIM. Mexico Deregulation. 3 More Energy Markets to Open.
Mexico will be opening the following 3 new energy markets:
- more shallow-water Gulf of Mexico
- more onshore conventional fields
- shale drilling, once the country finalizes shale regulations
How has Mexico deregulation changed in the last few years? Mexican government has been actively seeking and utilizing input from private oil companies
San Antonio Express News | Mexico moving forward with energy reform
3 Reasons a Texas County Wants County-wide Water Sharing. The Informed Intel:
McClellan County is considering a county wide water system to:
- Slow groundwater depletion
- Allow water suppliers to cooperate to more easily weather droughts
- Solve arsenic contamination issues
Waco Tribune | Leaders eye countywide water system to slow groundwater depletion
Water Pollution Initiative. Women Leaders in the Land of 10,000 Lakes. 3 Keys Informed Intel.
What is the water pollution clean up initiateve called? Plum Creek Initiative
Who came up with the Plum Creek Intitiative? Grad students trying to the solve the problem of engaging rural farmers in a water quality initiative by invovling more women, who are the priamry or supporting operator of 25% of Minnesota’s farms
What are the goals of the Plum Creek Initiative? Pay rural women to:
- teach neighbors about water quality
- show rural neighbors how to reduce pollution on their own farms
- teach their rrual neighbors to test local bodies of water for pollution
- help farmers fill out paperwork to get government grants
Governing | Why Women Could Be the Key to Curbing Water Pollution
MIT Says Texas has too Much Renewable Energy. 2 Solutions. Informed Intel.
Why is it a problem that Texas has an abundance of renewable energy?
- its causing negative energy pricing when wind and solar produce power in peak quantities
- utilities have to pay grid operators to take power off their hands
Are there solutions to a glut of renewable energy?
- Ship the energy. Yes, Germany, which also had negative energy prices, makes $2billion per year exporting energy
- Store the energy. Large scale storage of excess energy, which isn’t possible yet.
MIT Technology Review | Texas and California Have Too Much Renewable Energy
Who Signed for more than 50% of the Wind Power in 2015? Non Utilities.
What types of entities were in the more than 50% that contracted for wind power in 2015?
- major corporations
- universities
- major US cities
IS this an increase year over year? Yes, in 2014 non-utilities contracted for 23% of the wind
Who is the source for this data? American Wind Energy Association
Morning Consult | AWEA: Non-Utility Customers Signed for More Than Half of Contracted New Wind Power Capacity in 2015
4 Groups. 1 Water Pipeline. TWDB Protest. 5 Pieces Informed Intel.
Which 4 groups are working to stop the SAWs Vista Ridge water pipeline?
- Clean Water Action
- Environment Texas
- Environmental Stewardship
- Save Our Springs Alliance
What argument do they make to stop the pipeline? That the project does not qualify for public funds
What key fact about the Vista Ridge Pipeline raises the concern over public funds? That the project is a public-private partnership that is relying on public funds.
Do opponents think Vista Ridge created a shell corporation? Yes, opponents to the pipeline believe that Central Texas Regional Water Supply Corporation is a shell corporation that is controlled by private interests which will benefit from a public funding mechanism.
Is the Vista Ridge Pipeline in the final round of SWIFT funding? The April 11th agenda for the TWDB indicates that Vista Ridge will not get SWIFT funding this year.
Texas Public News Service | Environmental Groups Fight Proposed Texas Water Pipeline
Texas Tribune | Vista Ridge Pipeline Opponents Win Small Victory
TREND. New LNG export terminal. Port of Brownsville. The Who. When. Where.
Who- Which company wants to build a new LNG export terminal at the Port of Brownsville? Texas LNG
What stage of the process is the new LNG facility? A FERC application was made public on March 31, 2016
Where will the new facility be and how will product get to it?
- Export terminal would be shipped via a proposed 150-mile pipeline
- Connecting the already-existing Agua Dulce hub west of Corpus Christi to the Port of Brownsville
- It will ship product to customers in Latin America, Europe and Asia.
What is the business goal here?
- natural gas from the Eagle Ford Shale region
- Texas LNG will build a 2-phase 4 million metric tonnes per annum export facility
Houston Business Journal | Houston LNG co. files to build export terminal in South Texas
4 Key Points on Grid Regulation from CenterPoint President. 4 Key Points on Grid Regulation from Further North.
Center Point Energy Comapny President & CEO Scott Prochazka offered these insights into regulation of the Texas grid:
- Texas still needs more transmission lines
- Texas lawmakers have not imposed the renewable energy, electricity buyback or efficiency requirements found in other states
- the rules need to be dealt with so that transmission lines can “access the technology as long as it’s good for the system”
- Current rules say if solar or energy storage goes up, the rates on the lines will go up
In Chicago, transmission lines take this approach:
- “need an energy system that is cleaner, leaner, ultra-reliable”
- Grid needs to meet millenial needs of “customized, connected and communal”
- The grid is more important with solar and battery energy storage
- The goal is to have as many uses as possible for the grid such as “facilitating energy sellers and buyers, and companies that work for them, using the grid’s connectivity and potential to provide data.”
Houston Chronicle | Electric grid business is changing, and regulations should, too
Houston Chronicle | Electric grid business is changing, and regulations should, too
INTERIM. Special District Elections. Local Water Boards. 3 Allegations of Election Fraud. 1 2017 Legislative Fix.
Which water district is facing an election dispute? the Pritchett Water Supply Corp.
What are the allegations of election fraud?
- When the ballots were examined unopened ballots remained.
- The ballot box at the company head quarters was unattended for weeks.
- No oversight for mail-in ballots, which were mailed to the water district “company” headquarters
What 2017 legislation is on the horizon? Statewide election rules for special districts
Longview News Journal | Water board election disputed
Lt. Gov. Patrick Received Energy Award. Lt. Gov. Highlights this Energy Sector…
What award did the Lt. Gov. receive? 2016 Public Leadership in Energy & Environmental Stewardship Award
Who gives out this award? National Lieutenant Governors Association in partnership with GE
What does the award receogize? an official who played a key role regarding energy and environmental stewardship, enhancing the lives of constituents and positively impacting every aspect of American life.
What energy sector did Lt. Gov. highlight in his remarks? Natural Gas
Office of the Lt. Governor | LT. GOVERNOR PATRICK RECEIVES 2016 PUBLIC LEADERSHIP IN ENERGY & ENVIRONMENTAL STEWARDSHIP AWARD
Texas Drinking Water. New Watch Tool post-Flint.
Want to know about drinking water safety in Texas? TCEQ has a searchable database tool just for you.
TCEQ Texas Drinking Water Watch
Business Trend. Drones. Energy Companies. Private Property Rights.
Which texas companies were certified under the new drone certification system in Texas? HUVRdata (Austin) & Aviation Unmanned (Addison)
What entity does the drone certification? Texas A&M University System via its Corpus Christi campus and its engineering extension service
How is industry using drones? wind-power, oil and gas and transportation industries to provide aerial inspections and mapping, and for port and border security and coastline monitoring
Houston Chronicle | First two Texas companies credentialed for drone operations
3 Points Informed Intel. Texas AandM Real Estate Report. Oil Slump Improving. Top 3 Reasons.
- Year over year job growth is up. 1.6% from January 2016 to January 2015, compared to 1.3% the previous year.
- Hospitality industry led job growth.
- Job growth in education was next, followed by job growth in health services, construction, financial activities.
Bryan College Station Eagle | Texas A&M research: State making slow, steady recovery from oil price collapse
INTERIM. Trend. 3 Points Informed Intel from this Week's Major Step Forward in Texas Supporting Mexico Deregulation.
What’s the big news on the Texas side of Mexico deregulated energy market? Rangeland’s Energy’s South Texas Energy Products System terminal for Refined products and LPG
Where will the new terminal be located? Corpus Christi
How will the terminal be serviced? service includes rail service and the development of inland rail unloading terminal alternatives located on the KCS mainline in Mexico.
NGI Shale Daily | Texas Terminal to Be Hydrocarbon Bridge to Mexico
Water Reservoir Sparks State Rep. Email Aimed at City Council in an Early Primary State.
Where did a state representative’s email cause a stir with a city council? Osceola Iowa
What did the representative say in this email?
- The state representative’s committee “has issues” with the reservoir
- Raised a compromise of fixing 2 existing reservoirs in lieu of a new reservoir
- The Rep. strongly opposes the use of eminent domain for the reservoir
Osceola Sentinel Tribune | Kaufmann email leaves city council rankled
Water Security Arrests. The informed Intel…
The U.S. Justice Department arrested invididuals that attempted to break into a small dam to disrupt operations. The informed intel:
- 1st time someone has been charged with disrupting, or attempting to disrupt, critical U.S. infrstructure.
- The charges are” cyber myham” to disrupt the water infrastructure.
Washington Post | U.S. charges Iran-linked hackers with targeting banks, N.Y. dam
The Quick Details on the Governor Appointees to the Seismic Group at UT.
What’s this Technical Advisory Committee to the Bureau of Economic Geology at The University of Texas at Austin? It was created by HB 2 in 2015. It will:
- Advise the Bureau of Economic Geology on the use of funding
- Advise on the TexNet Seismic Monitoring Program
- Advise on collaborative research relationships with other universities in Texas
- Prepare a status report to the Governor and Legislature.
So, who are the appointees?
- Dan Hill– Stephen A. Holditch Department Head Chair of the Harold Vance Department of Petroleum Engineering at Texas A&M University
- Chris Hillman- city manager for the City of Irving
- Dana Jurick – manager of Seismic Analysis for the Geoscience and Reservoir Engineering Organization at ConcoPhillips Company
- Hal Macartney- geoscience manager of Sustainable Development for Pioneer Natural Resources
- Chris Nygaard– senior stimulation consultant for ExxonMobil Upstream Research Company
- Chris Pearson– State Seismologist for the Railroad Commission of Texas
- Brian Stump– Albritton Chair of Geological Sciences at Southern Methodist University
- Scott Tinker– State Geologist of Texas, director of the Bureau of Economic Geology, acting Associate Dean of Research and Edwin Allday Endowed Chair of Subsurface Geology and professor at The University of Texas at Austin Jackson School of Geosciences
- Robie Vaugn– (CHAIR) Vaughn Capital Partners, LLC
Governor | Governor Abbott Names Chair And Appoints Nine To The Technical Advisory Committee To The Bureau Of Economic Geology
3 Issues with Industry Regulation of the West Texas Lizard.
Why did the State fired the Texas Habitat Conservation Foundation, a group created to implement west Texas lizard protection?
- It failed to do any habitat restoration work
- It failed to monitor drillers & landowners “to ensure they were performing conservation measures to protect the dunes sagebrush lizard”
What did the director of the Kay Bailey Hutchison Center for Energy, Law and Business at the University of Texas say about this private lizard protection effort? It needed more transperancy in who was involved and what they were doing.
What does the private entity that was formerly charged with protecting the lizard say? Its a disagreement over what constitutes mitigation
What entity replaced the Texas Habitat Conservation Foundation? Bio-West, a subcontractor of the Texas Habitate Conservation Foundation
Statesman | State fires organization formed by Big Oil to manage threatened lizard
Fracking Bill Protects Landowners in a Red Plains State. Limits Oil and Gas Commission.
Landowner groups tout Nebraska’s LB 1082 as:
- Requiring periodic sampling and reporting of fracking waste fluids, and monitoring of produced water transporters in Nebraska.
- Requiring periodic evaluation of financial assurance for companies engaged in fracking waste disposal.
- Local Notices Required for WasteWater Injection Wells. Requires notification of counties, cities, villages and natural resource districts of fracking wastewater injection well applications.
- Reducing the “promotional” aspect of the Nebraska Oil & Gas Commission, and refocuses the agency’s purpose on promoting health, safety and protection of natural resources.
Nebraska LB 1082 was sent to the Governor on March 24, 2016.
Bold Nebraska |ACTION: Protect our Water Against Fracking Waste—Support LB 1082
10 Ways the TX Railroad Commission Protects Groundwater
- 25 feet minumum on setting of well surface casing below the base of usablequality water
- Mandated groundwater protection for each new well
- Inspections, Compliance, and 24/7 emergency response
- Require clean up of spills that to protect water resources
- Prevent spills and blowouts with requirements of drilling, casing, cementing, well control & fracture stimulation
- Mandate public disclosure of chemicals & water volumes in fracking
- Environmentally sound oilfield waste disposal
- Recycling of oil and gas fluids to reduce contamination
- Ground Water Protection Council & Ground Water Protection Committee coordination
- Interstate Oil and Gas Compact Commission
Texas Rail Road Commission | How RRC Protects Groundwater
2 Key Points from New Attorney General Opinion Request on Water Districts
Who is asking for an Attorney General opinion? Jim Hogg County Attorney
What question does the County Attorney want addressed by the opinion? Whether the Water Code prohibits someone from the County Attorney Office from serving on the board of a Water Control and Improvement District that the Couty Attorney serves.
RQ-0102-KP
Pension System to Impact Climate Change. 3 Points to Know Now.
- California Public Employees’ Retirement System will require corporations it invests in to have board members “who have expertise in climate change risk management strategies”
- CALPERS is the first pension system to take this step
- Its a new step, usually a pension system divests from controversial interests
Governing | Pension Fund Takes Unprecedented Climate Change Action
Lege Trend: Tax Pipelines For Using Eminent Domain
What is this new tax when land is taken by eminent domain? Maine’s HB 1660 applies a land use change tax to land taken by eminent domain.
In theory, land not taken by eminent domain could not be subject to the tax, which could serve as a means to encourage negotiation.
Nashau Telegraph | House approves pipeline measures
Trending: Doors Opening for Business Opportunities in Mexican Deregulation
A candidate for governor of the border state of Tamulipas is proposing a “Tamaulipas trade office” in San Antonio to promote more cross-border commerce.
Goals of the San Antonio trade office:
- connect entrepreneurs from both sides of the border
- provide assistance to Tamaulipas natives
- promote entrepreurship on both sides fo the border
His view on Texans: Texans have the technology and the experience
San Antonio Business Journal | Mexican senator eyes ‘Tamaulipas trade office’ for San Antonio
Lege Trend: Less Conflict of Interest Disclosures for Energy Regulators
The State: Arizona
The regulators who should have less disclosure of conflicts of interest: The state utility commissioner
The reason why: The previous utility commissioner had to resign because of a conflict of interest over her son-in-law working at a Solar Company.
The new conflict of interest disclosures for the utility commissioner, are they unheard of standards? No, its the same conflict of interest standard as lawmakers in Arizona
Utility Dive | Arizona lawmakers mull changes to conflict-of-interest law for utility regulators
Lege Trend: Private Power Lines Join Private Pipelines As Legislative Target. 3 Key Pieces of Info to Know 1st.
What state is proposing an eminent domain ban for transmission lines? Missouri
Is this all transmission lines or just privately owned transmission lines? The ban includes privately funded, long distance, Direct Current transmission lines.
Why this legislative response?
- Missouri Publiuc Service Commission denied eminent domain to a private transmission line that would traverse Missouri but not provide electic service in Missouri.
- The power line project was opposed by land owners, farmers, and 8 of the counties the that would have been home to the power line project.
Missouri HB 2418
Missouri SB 1107
The Caldwell County News | Eminent Domain Reform Bill Proposed In Missouri
Houston Gets 1st of its Kind Emissions Free Gas Power Plant. What you need to know:
- Construction began March 9th on the 1st of its kind no emission gas power plant in La Porte
- It is a 25-megawatt pilot project
- Will send the carbon dioxide into a sequestration pipeline that can then either:
- Be stored -OR-
- Be used for industrial purposes or enhanced oil recovery
- Its a project by Net Power, a collabortation among:
- Chicago-based Exelon Corp.
- The Woodlands’ CB&I
- North Carolina-based 8 Rivers Capital technology commercialization firm
- From the CEO:
- “Net Power is the first technology that allows policy and economics to work together, instead of against each other, to ensure the world meets our climate targets,” said Net Power CEO Bill Brown
FuelFix |
Drought + Water District + Bonds = SEC Fine
Why did a water district get fined by the SEC? A California water district saw declining revenue in the drought that led to shifting expenses to the incoming revenue side of the ledger.
Why did the water district shift expenses to income? The accouting gimick needed to show that the water district had sufficient revenue to cover the bond debt payments. Thereby misleading investors.
Could a state agency fine a water district’s investment pitch? Yes. State agencies have regulatory authority over investments.
Governing | California’s Largest Water District Settles With SEC Over ‘Enron Accounting’
Sacramento Bee | Major Valley water district settles with SEC
Texas Solar #9 Nationally. 5 Reasons Why.
- In 2015, the U.S. brought more solar capacity online than natural gas
- In 2015, Texas installed 207 MW of solar electric capacity, making it #9 nationally
- In 2015, the U.S. installed 7,260 MWdc of solar PV
- For total solar capacity, Texas ranks #10 with 534 MW of solar energy
- The Solar Energy Industries Association says Texas will rise quickly with the new utility-size projects that are in the planning stages
Dallas Morning News BizBeat | Why the sun-drenched state of Texas isn’t No. 1 in solar energy
Oil and gas Contracts Impacted by Bankruptcy. TX Law Unclear. 3 Bits Informed Intel.
What’s triggering this? Sabine Oil Company is seeking bankruptcy protection. In the bankruptcy proceedings, a judge in Manhattan determined that the pipeline contracts can be set aside & Sabine can get out of the contracts.
Is the bankrptucy judge’s ruling the end of this saga? No, the bankruptcy ruling isn’t binding. The judge further says that the pipeline contracts are governed by Texas Law.
What’s this business about Texas law being unsettled on this issue? The bankruptcy judge called this issue, whether the piepline contracts are tied to the land and thus not excusable in bankruptcy court, is unsettled in Texas law.
Hello 2017, the legislative drafters are busy. Its a huge deal for the midstream industry.
Market Watch | Sabine Oil & Gas may reject pipeline contracts
New Quake Rules for Oil & Gas in Sooner State. 3 Bits Informed Intel.
Oklahoma regulators enacted new rules concerning earthquakes, quakes, ground rattlers. let’s see what’s going on with our neighbor to the North.
- What regulation was passed? A 40% reduction in oil and gas wastes injected into the earth in 52,000 square miles in Central Oklahoma
- Why the Central Oklahoma geographical limitation? The area has seen 6 years of consistent earthquake and seismic events
- Why is Oklahoma enacting “sweeping restrictions on oil & gas? Last year OKlahoma had 907 earthquakes above 3.0
NYTimes | Oklahoma Puts Limits on Oil and Gas Wells to Fight Quakes
EagleFordTexas.com | Oklahoma regulators release plan to reduce temblors
Electricity, Water, Chemical. Warnings over Data Security. 5 Bits Informed Intel. Interim Ready.
Who is issuing the warning? The Obama Adminsitration
What entities are being warned about data security threats?
- power companies
- water suppliers
- transportation networks
What’s sparked the warning? The attack n the Ukraine’s power grid 2 months ago. It was the first cyberattack that produced a wide spread blackout
What was the target of the cyber attack? industrial control systems that act as the intermediary between computers and the switches
What could hackers do with control over industrial control systems?
- distribution of electricity
- guidance systems for trains
- valves that control water supplies
- machinery that mixes chemicals at factories.
New York Times | Utilities Cautioned About Potential for a Cyberattack After Ukraine’s
1 Road Block for Texas Businesses Investing in Mexico Deregulated Market.
Mexico deregulation is an abundance of opportunity for which Texas businesses? pipelines , refining, oil and gas drilling and electric generation and transmission
How can 12 pending eminent domain lawsuits impact Mexican deregulation?
- It will be the 1st time Texas courts consider whether pipelines are a proper public use when the pipeline traverses Texas but does not deliver goods to Texas.
- No, public use means no eminent domain.
Expect 2017 legislative action on this new issue.
News West 9 | Pipeline company files eminent domain lawsuits against Big Bend landowners
New Texas Pipeline suits Test Never Before Considered Issue on Public Use. 3 Bits Informed Intel.
What issues are land owners raising in the 12 pending eminent domain lawsuits for the Trans Pecos pipeline?
- Whether the petitions for eminent domain are valid
- Whether there is a proper public use (can there be a public use in Texas if Texas is not a recipient of any of the goods in the pipeline?)
Is this pipeline using eminent domain like every other pipeline in Texas using eminent domain? No, no one has ever built a pipeline like Trans Pecos with the purpose of selling natural gas to Mexico
Can the pipeline start building while lawsuits are pending? Yes.
News West 9 | Pipeline company files eminent domain lawsuits against Big Bend landowners
3 Judge Panel Approves Texas Ability to Regulate Lizard. 3 Key Points.
- A 3 judge panel in DC sided with regulators who had previously agreed to Texas’ regulation of the dunes sagebrush lizard over additional federal regulations
- When the U.S. Fish and Wildlife Service declined to list the lizard as an endangered species in 2010, the Defenders of Wildlife and Center for Biological Diversity sued.
- Trial court dismissed the suit on summary judgement and the appellate court agreed.
Courthouse News Service | Texas given reins over rare lizard
Statesman | Appeals court upholds Texas’ controversial plan to protect dune lizard
3 Ways Utilities are Driving Clean Energy Disruption
- Edison Electric Institute says even with the Supreme Court’s halting of the Obama Clean Power Plan, “nearly all new electricity generation is coming from wind or solar or from hyper-efficient generators that burn natural gas”
- Major strategic investments by the captains of industry support clean energy
- the industry is embracing software and technology changes to boost generation, distribution and transmission
Governing | The Accelerating Clean Power Disruption
Evangelicals for Clean Energy. 5 Bits Informed Intel. Pro-life. Anti-Monopolies. Anti-Big Energy.
Background of Evangelicals for Clean Energy:
What do the pro-life clean energy activists support?
- “stand up to utility monopolies protecting their profits”
- reduce fees and expensive regulations on clean energy
- 100% clean electricity in the U.S. by 2030
In their words:
“Our children, both the unborn and born, deserve the right to an abundant life unhindered by pollutants that threaten their hearts, lungs, and brains,” said EEN chief Rev. Mitch Hescox in a statement. “We have a biblical responsibility to defend our children and at the same time empower our markets for energy freedom.”
Fusion.net | Over 24,000 pro-life Christians in Texas are calling for 100% clean electricity by 2030
Game Changer Arrives to Electricity. Grid Regulations Forthcoming.
FERC Chairman says this is the game changer…. Large battery energy storage.
What will FERC do in response to this new sector of the energy market? ease the transition for large batteries onto the nation’s power grid
What does this mean for costs on the energy storage market? “energy storage costs should decrease 50 percent over the next five years”
Bonjour, Tesla and the others. Loyal Readers will recall the huge economic development deal Nevada put together for Tesla’s new battery plant in Washoe County.
Fuel Fix | FERC chairman: Energy storage potential “game changer”
Pipeline Sparks 5 year Moratorium on Eminent Domain by Private Companies.
Which state legislature is moving a 5 year moratorium on private company eminent domain use? South Carolina
What motivated this move? The Palmentto pipeline
What is the Legislature required to do in those 5 years? Study the use of eminent domain, specifically as it applies to pipelines.
Jasper County Sun Times | S.C. Senate approves scaled-back eminent domain bill
4 Energy Legislative initiatives from Speaker Straus.
Via Texas Lawyer, Speaker Straus will be promoting these legislative issues in 2017:
- sustainable energy development
- workforce development
- broadening education initiatives
- enhanced penalties for oil field theft
Texas Lawyer | Texas House Speaker Joe Straus Focuses on Energy Issues for Next Legislative Term
INTERIM. MUD creation. What issue is the focus of activists on the right?
Far right activsits are paying attention to the voting requirements for the creation of special districts.
What do they have their sites on? the use of temporary trailers to estbalish residency to vote for MUDs.
Big Jolly Politics | County Attorney asked for AG opinion on the use of rented voters- will he or won’t he?
TX Supreme Court Refuses Brazos Water Rights Case. What. Who. The 2017 Lege move.
Remember the time that TCEQ honored Dow’s 1942 superior water rights, cut off junior water rights to 700, mostly farmers, but made an exception for utilities? If you do, it won’t happen again.
What’s happening with this legal fight? The TX Supreme Court denied TCEQ’s claim and allows the appellate decision to stand that says, TCEQ can’t pick and choose among junior water rights.
What does this mean? utilities will probably want a state law exemption so they can make their junior water rights superior to other junior water rights.
AGRILIFE | BREAKING NEWS: TX and NM Supreme Court Rulings Impact Agriculture
KUT | Groundwater Case Could Have Trickle-Down Effects on Future Regulation
Lege Trend: Stopping Environmental Whistleblowers by Re-writing Trespass Laws. 5 Bits Informed Intel.
What type of land is being protected from researchers that want to gather data? Private property outside, the supporters point mostly to farm & ranch lands
What kind of data are they gathering? All sorts, such as water quality
What do opponents to these new laws requiring permission to gather data on land say?
- it prevents people from taking pictures of wildlife and scenery from public places
- the true intent is prevent the exposure of pollution
- the state trespassing laws violate federal law
What do the laws say? instead of having to prove that a person trespassed, the person who collected data has to prove that she had permission to be where she was when she collected the data
What Wyoming legislators say about the laws they passed: “ “Do we value property rights, or are we going to allow vigilantism in the guise of protecting the environment to trample those rights?” Wyoming state Sen. Larry Hicks (R)
WallStreet Journal | Wyoming Trespass Laws Under Fire by Environmentalists, Photographers
$864 average water bill for lead tainted water.
$864 is the average annual water bill for residents of Flint, MI.
That’s about double the national average & 3.5 times what their neighbors in Detroit paid.
Governing | Study: Flint Paid Highest Water Rates in U.S.
Candidates in Texarkana House District & Senate District Talk Water. 3 Bits InformedIntel.
On the Importance of Water:
- Lavender: the main issue in this race- water
- “It is critically important that we own and control our water supply—more critical than most anything else.”
- VanDeaver agrees that water is the top issue
- he supports more local control.
On DFW piping in water from East Texas
- Brown: letting DFW have control over East Texas water is crazy
- Hughes: DFW should look elsewhere
- Simpson: “We need to defend our resources, our water and our property,” he said. “Our economic future is just as valuable as Dallas.'”
- Lee: Dallas doeesn’t have a water supply problem, it has a water pipe problem. Fix the pipes.
- Simpson to the TWDB: “”Property rights need to be defended,” he said. “State water boards don’t need to be determining economic value.””
On Marvin Nichols Reservoir:
All 6 candidates say NO.
Texarkana Gazette | State candidates discuss water rights, other issues
Water Front and Center in Texas House Race.
The details:
Which House race? House District 17- Cyrier v. Golemon
What water issue is involved? The SAWs pipeline & Cyrier’s 2015 HB 3163
What’s being said?
- Golemon is saying he doesn’t accept funds from groups that ” do not desire to protect rural water rights.”
- Opponents to the SAWS pipeline say that local groundwater districts are the only thing protecting rural Texans
- Opponents to the SAWS pipeline say rural Texans also don’t want their farmlands destroyed like in California
Watchdog | Water war looms over Texas House race
Republican State Considering Moratorium on Pipelines. 3 Bits Informed Intel.
What state is considering a moratorium on pipelines? Georgia
Why a moratorium on pipelines? Is there a crisis? The state denied eminent domain authority for a pipeline that was owned by a private company and did not deliver any goods within Georgia.
What is the bill’s author saying? There needs to be a study of the eminent domain authority of pipelines and the environmental impacts
Is the author a Republican or Democrat? Republican
What are the specifics in the legislation?
- A moratorium until the middle of 2017
- Create a 13-member commission of experts from business, agriculture, the environment and related fields to review the process, compare notes with how other states do it, and then prepare legislative recommendations by yearend.
Florida Times Union | Georgia House to consider bill to impose moratorium on pipelines
3 Reasons Water Quality Regulations Fail
- Local Politics directly impact local compliance
- e.g.: Texas Rio Bravo Water Treatment Plant that included local official doctoring water quality testing results
- Multi layer regulation- local government, state government, federal government
- Fines take away public funding to correct the compliance issues
- It takes a long time before the EPA acts or admits it should have acted
The Atlantic | City Lab| Why It’s So Disturbingly Common for Water Regulation to Fail
Lege Trend: Allow Cities to Use Eminent Domain to Acquire Private Utilities.
Loyal subscribers have seen this trend as towns in Montana and California have moved to purchase by eminent domain private water utilities that aren’t providing a cost effective service to its citizens.
But, now the trend shifts to the Legislature. Which state legislature is moving language that allows local governments to use eminent domain to buy private utilities? Florida
What motivated the legislator to move forward with this new eminent domain authority?
- Constituents were ” being forced to pay rates that are much higher” than other residents of the same county
- The Constituents paid higher rates and experienced
What triggers will the law have to allow the governments to buy private utilties?
- 65 percent of the customers sign a petition to initiate revocation of the utilities ability to operate
- the local government will have access to low-interest financing for utility acquisitions
Tampa Bay Times | Bill seeks to ease Summertree utility sale
Legal Trend: Pipeline. Not a Utility if it traverses state with no delivery. No Eminent Domain.
Where did a state Supreme Court deny eminent domain power to a pipeline? Kentucky.
What do legal pundits say was the issue triggering the denial of the power of eminent domain? That the pipeline isn’t regulated as a utility under Kentucky law.
Why wouldn’t a pipeline be regulated under Kentucky law? Because Kentucky law restricts regulated utilities to those operating within the state. The proposed pipeline would traverse the state but not deliver goods for a public purpose in the state.
89.3 WFPL | Kentucky Supreme Court Won’t Take Up Bluegrass Pipeline Challenge
Courier Journal | Bluegrass Pipeline loss big win for landowners
INTERIM. Oil theft & Mexico Deregulation. 3 Bits Informed Intel.
- In 2015 Mexico had a 52% increase in pipeline theft
- Dozens of civilians have been killed due to oil thefts
- In 2014 3,674 illegal pipeline taps were discovered in Mexico
- Most rapid growth in theft are in the Mexican states of Tamaulipas and Veracruz
Why does this matter in Texas? Multiple Texas originating pipelines are bing built to carry product into Texas.
Business Insider | Mexico’s oil industry now has an organized-crime problem
Trending: Gas Leak Prompts New Regulatory Changes for Gas Wells.
Where is the gas well leaking? Southern California is experiencing a nonstop gas leak at the Aliso Canyon gas storage complex
What was the regulatory response to the nonstop gas leak? Emergency regulations and orders for inspections of all gas wells
What do the new rules and inspections require?
- Require at least a daily inspection of gas storage well heads, using gas leak detection technology such as infrared imaging.
- Require ongoing verification of the mechanical integrity of all gas storage wells.
- Require ongoing measurement of annular gas pressure or annular gas flow within wells.
- Require regular testing of all safety valves used in wells.
- Establish minimum and maximum pressure limits for each gas storage facility in the state.
- Require each storage facility to establish a comprehensive risk management plan that evaluates and prepares for risks at each facility, including corrosion potential of pipes and equipment.
Contra Costa Times | State orders inspections, new rules for gas wells after SoCal gas leak
INTERIM. Mexico Dereg. RRC and Mexican Energy Officials Meet. 3 Bits Informed Intel.
- Texas Railroad Commission met with the Mexican Energy and Finance Ministries to discuss stable shale exploration and regulations
- Texas Railroad Commissioner Christi Craddick spearheaded the meeting
- Opportunities abound: The Mexico Shale Summit is in San Antonio later this month
BOE Report | Mexico looks to Texas for assistance in developing own shale reserves
$3.1 B pipeline moving forward to aide TX O&G suppliers in Mexico Deregulation.
Tampaulipas Governor Torre-Cantu announced a memorandum of understanding between Tamaulipas and teh Federal Energy Commission to move forward with the $3.1 Billion pipeline to move Texas energy product into Mexico.
The pipeline: Sur de Texas-Tuxpan Pipeline that will deliver natural gas from Texas to destinations in Mexico.
Houston Business Journal | 5 things to know in Texas energy this week
Supremes Approve Lower Wholesale Power Rates. Demand Response. 2 Bits Informed Intel.
The U.S. Supreme Court ruling in FERC v. Electric Power Supply Association has 4 crucial elements:
- its a ruling against states that sought more control over the grid
- its a ruling that approves demand repsonse pricing
- its a new federal approach to lowering electricity rates & avoiding power blackout
SCOTUSBlog | Opinion analysis: Court blesses lower wholesale power rates
Lege Trend: Local Control. Fracking. Golden State Acts. 2 Bits Informed Intel.
The Colorado Oil and Gas Conservation Commission passed new regulations that will:
- Allow local governments to consult with energy companies on well locations, storage tanks & other facilities
- Generally no local ordinances are permitted on well locations, storage tanks or other energy facilities.
The result of these new regulations:
- local governments are not pleased
- land owners are not pleased
- oil & gas is not pleased because the new regulations go further than task force recommendations.
What’s the next move in Colorado:
- Supreme Court has pending cases on local fracking issues
- Colorado has initiative and referendum which may push the issue to the voters
CBS Denver | State OKs Oil-Gas Rules Giving Cities, Counties Limited Say
4 Reasons Gathering Pipelines Are an Unregulated Concern?
- Texas has 6,000 miles of gathering pipelines
- Gathering Pipelines have grown by 33% in the last 3 years
- Government Accountability Office reviewed gathering pipelines about found that:
- gathering pipelines are largely unregulated
- gathering pipelines are growing exponentionally in size and pressure
- The Texas Pipeline Association says Texas regulates gathering pipelines in rural and urban areas, but the feds are intent on passing regulations on gathering pipelines.
Houston Public Media | Once Largely Ignored, Oil And Gas ‘Gathering’ Pipelines Become A Concern In Texas
New Kid on the Block. New Leadership at Texas Advanced Energy Business Alliance
Suzanne Bertin will be the new executive director for the Texas Advanced Energy Business Alliance.
What is the Texas Advanced Energy Business Alliance? a group of local and national companies that represent the vibrant and growing advanced energy industry in Texas
What’s the economic impact of this sector? Texas advanced energy revenue reached $16 billion in 201.
- That’s 8% of the total U.S. market for advanced energy technologies and products
Bertin’s bio:
- regulatory and government affairs in Texas and the Southeast for EnerNOC
- worked at Reliant’s Office of Policy Development at the Public Utility Commission of Texas (when the ERCOT competitive retail market was established)
- electrical engineering positions for Austin Energy and NASA’s Johnson Space Center
AG Opinion: Can 1 Water District Contract with Another Water District. 3 Points from the AG Opinion.
What question is answered in attorney general opinion KP-0063?
whether a water supply district may assign to another district certain duties and rights under an operating agreement, including approval of aspects of the annual budget and contracting for certain services
What did the Opinion Say? Yes, 1 water district can contract with another, but there are limitations, such as:
- a district cannot contract away its legislatively entrusted authority
- a district can contract for rights, powers, and duties authorized by the Interlocal Cooperation Act, section 49.213 of the Water Code
- a district cannot abrogate its fiscal responsibilities under section 49.067 ofthe Water Code
Water Markets. 3 Responses from Farmers. 1 Statement from a State Rep.
- non-farmers calling rural landowners’ water rights a “gold mine” displeases farmers
- compensation for taking water is not the solution
- creating a water market is ” shortsighted and selfish”
“I look forward to working with my constituents and concerned citizens from all over the state to develop legislation that would promote the long-term welfare and prosperity of our communities, including exploring opportunities for conservation technologies to reduce demand and lessen our reliance on groundwater,” concluded State Representative Cyrier.
2 Reasons Water Utilities Moving Online Invites Hackers.
- Most suseptible to advanced persistent cyber threats that target flaws in software programs that run water valves and controls
- In 2014, the FBI confirmed that Iran, China and Russia are actively looking for cybersecurity weaknesses in the U.S.’s water and electric infrastructure.
The profilactive solution: manual back up machinery.
What regulatory/legislative help does the solution need?
- Public utility commissions and the feds can help utilities recover the costs of running two systems
- State regulators can help reduce risks by working more collaboratively with federal regulators to push utilities to focus on creating comprehensive cybersecurity strategies rather than just complying with regulatory requirements, according to a report by the Government Accountability Office.
Governing | As Water Utilities Move Online, Hackers Take Note
Trending world wide: Incentive Cuts for Solar. 3 Bits Informed Intel.
Europe and Asia are hitting the breaks on solar incentives. What impact is that having on solar?
- Solar installations are expected to slow by 75%
- Last year the demand for solar increased by 34%
- US tax credits offset the impact to solar market declines in Europe and Asia
Fuel Fix | Solar power hits the brakes amid incentive cuts in Asia, Europe
3 Bits of Informed Intel How Fracking Helps Farmers & Groundwater Supplies.
- Texas A&M researchers have discovered using residual fracking water in 1 part to 4 parts well water is sustainable for cotton farming
- The ultimate goal is to use residual fracking water for edible crop irrigation
- Currently 86% of the water used for farm and agriculture irrigation is groundwater.
KSLA 12 | Fracking water being used to irrigate crops
Trend: Water Testing. 1,001 Systems in Texas not Tested according to TCEQ. 2 Points to Know Now.
- The 2,245 Texas public water suppliers were to test for lead and copper in their systems last year, but 1,001 failed to do so.
- TCEQ has no current data on lead and copper levels for 1 in 7 of the state’s 6,916 public water systems
- Its all the result of a 2014 TCEQ rule change that allows public water supliers to use the testing facility of their choice, which means the public water supplier is required to find the sample gathering equipment that the state testing facility provides.
Denton Record Chronicle | Failure to test water widespread
Legal. Drilling Tax Credits Heads to TX Supreme Court. Legislation Forthcoming.
What’s this Texas Supreme Court case about? Whether the equipment, used underground, in the oil and gas world, is entitled to a manufacturing tax exemption.
What did the other courts do? From the bench the district court said, yes, the tax exemption aplies. Then the district court issued a written opinion that reversed the oral statements. The court of appeals agreed that underground oil and gas equipment is not entitled to a manufacturing tax credit.
When will we know what the TX Supreme Court says? Sometime after the March 8, 2016 oral arguments.
What’s the legislative outlook? Two options:
- If the exemption exists, the state will amend the tax code to recoup the lost revenue
- If the exemption doesn’t stand, oil and gas, can move to clarify that underground equipment does qualify for the manufacturing tax exemption.
Your Oil & Gas News | Texas Supreme Court schedules oral arguments in southwest royalties case
Trending: Rate Case. Discriminate against Solar. 3 Bits of Informed Intel.
- Senator Rodriguez is speaking out in opposition to El Paso Electric’s rate case before the PUC
- El Paso Energy’s rate case would “set precedent that utilities can discriminate against solar”
- El Paso Energy seeks to move solar customers
- into a brand-new rate class
- increase bills by at least 24%
- move to time of day billing, basing bills on the time of day these customers get the most energy from EPE
Rio Grande Guadian| Senator Jose Rodriguez| RODRÍGUEZ: PUC SHOULD REJECT EL PASO ELECTRIC’S DISCRIMINATORY SOLAR PROPOSAL
Trend: Editorial: Seismic Study Goals. 3 Bits of Informed Intel.
- Scientists see a link between fracking and seismic activity
- The Railroad Commissioner and its seismologist aren’t convinced
- Texas needs “definitive research is necessary to convince” the Railroad Commission
- Definitive research may be found in the $4.5 million the Legislature appropriated to studying seismic activity via the Bureau of Economic Geology at the University of Texas at Austin
STAR TELEGRAM EDITORIAL | Seismic study should get to cause of quakes
What SD 24 Candidates Said about Water this week. Groundwater Ownership. Farmers Not Paying Their Due. City Dwellers Want Rural Water…
- Cobb: “Big cities are buying conservation easements for the water. Rural values are Texas”
-
Williams: “Water has ownership and price; you’ll run out of cheap water. You have to keep ownership of the groundwater.”
-
Downton: Rice farmers use more water and pay 1/10th the water cost
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Mayes: the legislature needs to protect rural water from commercial and metropolitan “takers.”
-
Williams: ” the Senate can’t change people’s vested water rights, and “surface water is ‘done’ in Texas with no growth possible.” Owned groundwater, once taken, must be priced right and controlled by price and property rights.”
Hill Country Community Journal | State Senate candidate forum informs at RWKC
INTERIM: Mexico Deregulation Major Investment. Major Opening for Texas Companies. 2 Points to Get you Ahead.
- What is the source for the major investment in deregulation in Mexico? Goldman Sachs
- What is the amount of the investment? at least 50% of the equity in any projects BONJOUR Texas Companies looking for an entry, totalling at least $1.15 billion
- What are hte targets of the investment?
- Mexican energy infrastructure
NASDAQ | Goldman Sachs Plans Mexico Energy Infrastructure Investments
Procurement Opportunities: Invest in Clean Energy to Support Texas Competitiveness. 3 Points to Know Now.
- What type of clean energy should Texas invest in?
- hyperloops
- efficient automobiles
- buildings that consume less energy and economical electricity storage
- continued support of wind energy
- Diversification of clean energy shields Texas from potential future rate hikes required by fossil fuel derived energy
- Moving toward natural gas fleets offer:
- less carbon dioxide than diesel
- reduced vehicle maintenance
- lower fuel costs
Trib Talk | Mark Holtzapple| professor of chemical engineering, Texas A&M University
Lege Trend: 3 Reasons 1 State Senator Wants to Stop a Transmission Line.
What state has a legislator trying to stop eminent domain authority? Illinois State Sen. Kyle McCarter
What project does the IA State Senator want to stop? Grain Belt Express Clean Line power project
Why is he opposed to the clean power line using eminent domain?
- Because he supports the private property rights
- Because the project offers no clean energy for Illinois
- Because the eminent domain authority resides with a private company, held by private investors
Illinois Business Journal McCarter objects to eminent domain for midstate transmission line project
Wind Sets 2015 Record In Texas. 3 Quick Facts
- On December 20th, wind energy accounted for 45% of ERCOT load
- The high wind capacity created no grid instability because ERCOT “has ample fast-ramping natural gas generation“
- ERCOT maintained reliability due to natural gas and demand management resources
Utility Dive | ERCOT: Wind energy provided record 45% of electricity on Dec. 20th 2015
2 Reasons Mexico is Energy's Future According to a Houston Oil Company
Fieldwood Energy CEO Matt McCarroll says Mexico represents long-term opportunity because:
- US companies can utilize efficiencies and development tools that PEMEX hasn’t used
- US Companies can enter into joint ventures with Mexican companies
E&P Magazine | Long-Term Opportunity: Fieldwood Energy CEO Talks Mexico, GoM
The Next Big Thing in Mexico Deregulation: 3 Changes to Pemex. Business Opportunities Abound for US Companies.
Background: In 2013 Mexico opened oil and gas fields to foreign companies for the first time in 75 years. That’s the first time Pemex, Mexico’s controlling oil and gas company, has seen competition in 75 years.
What’s going to happen to reform Pemex?
- Pemex will sell assets
- it owns hospitals
- floating hotels
- shipbuilding firms
- Pemex will cut workforce
- Pemex will ” refocus its resources on finding, producing and refining oil and gas”
San Antonio Express News | The next big thing in Mexican energy reform: Pemex
Houston Chronicle | Pemex remains a tough challenge for reformers in Mexico
INTERIM. Dam Data Security Attack. 2 Key Pieces of Information that Impact Enforcement & new laws.
What dam got hacked? Iranian hackers targeted a dam in New York. Shortly thereafter Ukranian hackers got into a power grid.
What type of hack triggers a state response or the creation of a new state penalty?
- Look to whether the hackers took control of the system or just “looked around”
- Look to whether any person was injured as a result
Just Security | Was the Cyber Attack on a Dam in New York an Armed Attack?
Trend: Clean Energy Goals via 2 State Agencies. Transportation & Environmental Regulation.
Where did the California Energy Commission opened a Clean Transportation Center? San Joaquin Valley
Why? 2 reasons.
- accelerate the use of clean vehicles and fuels
- assist the region quickly meet its air quality targets
What will the clean energy center provide?
- technical assistance
- project development expertise
- support with acquiring funding for San Joaquin Valley vehicle fleet owners, local governments, businesses and residents.
- Expand the use of zero-emission vehicles, clean trucks and high-efficiency non-road equipment.
NGT News | State-Funded Clean Transportation Center Opens in California
Trending Issue: Net Metering. Western Swing State Regulators Say Yes to Reforms. 3 Points to Know Now.
Which state regulators said yes to net metering reforms? Nevada’s Public Utility Commission
What was the Nevada PUC rational for moving forward with net metering reforms?
- The need for rooftop solar rules that treat all ratepayers equally
- Legislature required the PUC to address set metering rules
What did the Nevada net metering reforms do?
- decreased the rate paid to rooftop solar customers for the power they export to the grid
- created a seperate rate class for all small commerical and residential net metering customers
- created a time-of-use pricing option
- increase in fixed charges alongside a decrease in the volumetric commodity charge designed to recoup costs from net metering customers
- increase the monthly charge for rooftop solar from $12.75 to $17.90 per month in the first year
- the increase will eventually reach $38.51 at the end of five years for rooftop solar customers
- NEM credit for present and future solar owners would fall from $0.11/kWh to $0.09/kWh in the first year and then, progressively, to $0.026/kWh in 2020.
Utility Dive | Nevada PUC denies request to stay solar net metering reforms
Trend: Energy Co. + Water = New Kid on the Block
Who’s the new kid? Waterbridge Resources
Where are they? Houston
What’s their business? to “develop, acquire and manage water infrastructure for upstream producers”
Oil & Gas investor | WaterBridge Resources Receives $200 Million In Equity
Solar Job Growth by 20%. 4 Quick Facts to Know Now about Solar and Economy.
- The solar jobs grew 12 times faster than the overall economy;
- This is the 3rd consecutive year that solar employment grew by approximately 20%;
- Veterans of the U.S. Armed Services make up 8.1% of the solar workforce;
- In 2016, solar industry will increase by 14.7%
The Solar Foundation | National Solar Jobs Census
Lege Trend. Tariffs for Electricity Transmission, Pipeline Building.
How did these concept of tariffs emerge for building electricity transmission lines and pipelines? Legislators in New Hampshire are seeking to find a way to address landowner concerns about natural gas pieplines connecting to electricty generating facilities.
What is the purpose of imposing a tariff? ” make pipeline construction and sale of natural gas in New Hampshire more expensive, less profitable and less attractive.”
Ledger Transcript | Bills Aim to Thwart Pipeline
INTERIM. 4 Bills that Require Interim Studies due in 2016.
Texas Legislative Council was kind enought o comb through 2015 legislation to tell us all about other interim studies buried deep in bills & resolutions.
For energy and water, we’re talking about these bills:
- UT Austin’s TexNet Seismic Monitoring program report
- What the report will answer:
- modeling of reservoir behavior for systems of wells
- establishment of a technical advisory committee
- costs necessary to maintain the TexNet Seismic Monitoring program after 2016
- When the report is due: December 1, 2016
- What bill triggered this: HB 2, Section 16
- PUC will report on Alternative Electric Utility Rate Making Mechanisms
- What the report will answer:
- recommendreforms to the ratemaking process
- reforms must improve the efficiency and effectiveness of the oversight of electric utilities
- reforms must ensure that electric rates are just and reasonable
- When the report is due: January 31, 2019
- What bill triggered this: SB 774, Section 1
- GLO, with help from TWDB, to study the use of wind or solar power to desalinate brackish groundwater
- What the report will answer: the report is required to contain the results of the study
- When the report is due: December 31, 2016
- What bill triggered this? SB 991, Section 2
- TWDB to study the hydrology and geology of confined and unconfined aquifers
- What the report will answer:
- determine the quality and quantity of groundwater in these aquifers
- whether these aquifers are tributary or non-tributary
- the contribution of these aquifers to any surface flow or to any other aquifer in Texas
- When is the report due? December 31, 2016
- What bill triggered this? HB 1232, Section 1
TLC | Interim Studies Established by Enrolled Bills and Resolutions 84th Legislature
INTERIM. Power Grid Hacked. 1st Major Hacker Blackout.
3 take aways from the alleged Russian hacking of the Ukrainian power grid:
- “the malware used in the attack as part of the BlackEnergy family”
- 700,000 homes were left without power
- U.S., officials say hackers from Russia, Iran and China are all probing the U.S. power grid for vulnerabilities
The Hill | Russia tied to cyberattack on Ukrainian power grid
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